96-1566 Council File # �����`p
Green Sheet # �b Z'�D
R RESOLUTION
�� CI SAINT PAUL, MINNESOTA � �
� �
Presented By
Referred To Committee: Date
RESOLUTION AUTHORIZING CARRYFORWARD OF
UNUSED PRIVATE ACTIVITY BOND VOLUME CAP
1 WHEREAS, the City of Saint Paul, Minnesota (the "City") is an "entitlement issuer" within the
2 meaning of Minnesota Statutes, Section 474A.02, subd. 7; and
3
4 WHEREAS, the City's allocation as an entitlement issuer under Minnesota Statutes, Chapter
5 474A.03, subd. 2a(3) for the year 1996 is $15,785,000; and
6
7 WHEREAS, in the year 1996,the Housing and Redevelopment Authority of the City of Saint Paul,
8 Minnesota (the "Authority") has issued $204,018.75 of tax-exempt bonds utilizing the City's
9 entitlement allocation; and
10
11 WHEREAS, the Authority intends to issue $5,800,000 of tax-exempt bonds for a multifamily
12 housing project (the Kendrick Apartments project -- herein, the "Project") utilizing the City's
13 entitlement allocation on or prior to December 31, 1996; but in the event such bonds cannot be
14 issued for the Project in 1996,the City will carryforward the $5,800,000 of authority into 1997 and
15 issue the bonds in that year; and
16
17 WHEREAS,the City may,under § 146(� of the Internal Revenue Code of 1986, as amended, and
18 under Minnesota Statutes, Chapter 474A, "carryforward" all or a portion of the City's unused
19 entitlement allocation for the year 1996; and
20
21 WHEREAS,the City has determined that the "carryforward" of its remaining entitlement allocation
22 of$9,780,981.25 for the year 1996 will best facilitate t�-exempt financings or issuance of mortgage
23 credit certificates projected to be undertaken by or on behalf of the City or the HRA in the year 1997
24 and thereafter;
25
26 NOW,THEREFORE,BE IT RESOLVED by the City Council of the City of Saint Paul,Minnesota,
27 as follows:
28
29 1. The City hereby elects to carryforward the City's remaining 1996 entitlement
30 allocation awarded to the City pursuant to Minnesota Statutes, Chapter 474A($9,780,981.25) for
31 the purposes of qualified mortgage bonds and/or mortgage credit certificates.
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32 2. The City hereby further elects to cariyforward a portion of the City's remaining 1996
33 entitlement($5,800,000) for multifamily purposes if the bonds to be issued to finance the Project
34 should fail to be issued on or prior to December 31, 1996.
35
36 3. The City's Director of Planning and Economic Development is hereby authorized and
37 directed to file with the Internal Revenue Service a Form 8328 specifying (a) the amount of
38 entitlement allocation carried forward by the City from the year 1996, and further specifying the
39 amount carried forward for the purposes of qualified mortgage bonds or mortgage credit certificates
40 and (b) if necessary, the amount carried forward for the purposes of residential rental projects. A
41 copy of said Form 8328 shall be provided to the Minnesota Department of Finance in accordance
42 with Minnesota Statutes, Chapter 474A. The Form 8328 shall be filed with the Internal Revenue
43 Service and with the Minnesota Departrnent of Finance on or before the last Monday in December,
44 1996.
45
46 4. The amount specified above to be carried forward for the purposes of qualified
47 mortgage bonds and/or mortgage credit certificates may be utilized by the Authority upon approval
48 of a housing finance program by the City pursuant to Minnesota Statutes, Chapter 462C. The
49 Authority may, at its option, delegate its authority to issue bonds or mortgage credit certificates
50 pursuant to the carryforward election to the Minneapolis/Saint Paul Housing Finance Board. The
51 proceeds of bonds or mortgage credit certificates issued by the Minneapolis/Saint Paul Housing
52 Finance Board may be applied without regard to jurisdictional boundaries as provided in Minnesota
53 Statutes, Section 462C.12, subd. 3.
54
55 5. A 462C Program (the "Program") was prepared and approved by the City for the
56 Project. The Program was submitted to the Metropolitan Council and approved. The City has given
57 its preliminary approval to the Project and pursuant to Section 72 of the Saint Paul Administrative
58 Code authorized and directed the Authority to issue the bonds for the Project.
Nays Absent Re ested b De artment of:
B a ey � Y P
Bost�om
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Harr P E n m' D v lo me
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By:
Adopted by Council: Date ��,\� �T q(�
Adoption Certified by Council Secretary Form App ed by C' ttorney
By: �_ � . �,.,� _._
By:
Approved by Mayor: Date 1 z C�j �6
�,���`� �/��� _ „ Approved by Mayor fo Submission to Council
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By:
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OEP11R1MEtiTIOFFICE/COUNCIL �����
DATE INITIATED
P.E.n. 12/2/96 GREEN SHF.��
CONTACT PERSON 6 PHONE INITIAL INITIAUDATE
�DEPARTMENT DI �l� �CITY COUNCIL
Katy Lindblad, 266-6614 ASSION �CITYATfORNEY �CITYCLERK
NUMBERFOR
MU3T BE ON COUNCIL ACiENDA BY(DATE) ROUTINQ �BUDGET DIRECTO �FIN.�MpT.SERVICES DIR.
December 18, 1996 ORDER �MAYOR(ORASSISTANT) �.�r�=-==-_
TOTAL#OF SIGNATURE PAGES 1 (CLIP ALL LOCATIONS FOR SIt3NATURE) • eyer �
ACTION REQUE3TED:
Carryforward of unused private activity bond volume cap.
RECOMMENDATIONS:Approve(A)or Reject(R) PERSONAL 8ERVICE CONTRACT8 MUST ANSWER THE FOLLOWIN�i CUESTIONS:
_PLANNINO COMMISSION _ CIVIL SERVICE COMMISSION 1• Has this person/firm ever worked under a contrect for this depertment?
�CIB COMMITTEE _ YES NO ����VL`D
2. Has this person/firm ever been a city employee? ��
�_$TAFF
— YES NO
_DISTRICT COURT - 3. Does this efSOn/fiml
p possess a skill not normally posseas��ny�c.{�re mployee4
SUPPORTS WHICH COUNCIL OBJECTIVE7 YES NO
Expleln all yss answsrs on seperat�shsst end sttaeh to�nsn sheet
MAYO#�'S OFFEC'E
INITIATINO PR08lEM,ISSUE,OPPORTUNITY(Who,Wh�t,WMn,Where,Why):
Saint Paul receives an entitlement allocation of tax-exempt bonding authority every
year. In 1996, the city used its 1995 allocation to fund the Take Credit! program.
In addition, the city used a portion of its 1996 allocation in the restructuring of its
Phase X first time homebuyer program. It is anticipated that an additional $5.8 million
of the 1996 allocation will be used to finance the Kendrick Apartments project. The
remaining allocation should be carried forward into 1997 for use in the city's single-famil
mort a e ro ram .
ADVANTA(iE8 IF APPROVED:
Saint Paul retains its valuable tax-exempt bond allocation.
DI3ADVANTAQE3 IF APPROVED:
G(1t1i1C�1 F�,���'t�1 �i811t�t
C:r'�.� � . �.�
DISADVANTAOES IF NOT APPROVED:
Saint Paul loses tax-exempt bond allocation and reduces future year's entitlements.
TOTAL AMOUNT OF TRANSACTION S COST/REVENUE BUD(iETED(CIRCLE ONE) YES NO
FUNDIWG SOURCE ��,1-.vl�C�/ �� �'� • ����ACTIVITY NUMBER �`� ' �•
FINANCIAL INFORfuSATION:(EXPLAIN)